Sell My Annuity Payments
Finding The Answer To The Question, “Should I sell my annuity payments”.
Before asking the question, “Can I sell my annuity payments”, you need to consider the more important question which is, “Should I sell my annuity payments”. Annuities and structured settlements are contracts that provide income over as set period of time in a set of fixed payments.
These contracts have been established either as an investment vehicle or were acquired through an award from a lawsuit due to an accident injury. The contracts provide a fixed income over a lengthy period of time. While these contracts are usually backed by insurance companies or other specialized annuity companies providing very dependable income, there are times when emergencies arise and the owner of an annuity or structured settlement will consider selling the contract for a lump sum payment.
Such a sale could include the complete contract or a portion of the structured payments. For instance a contract may have payments due over a 20 year period. The seller may decide to sell the payments due for a 2 year time period and then after that period began receiving payments for the remainder of the contract.
The First Step To Deciding To Sell My Annuity Payments
If the decision is made to sell all or part of a contract the first step would be to determine if your particular annuity or structured settlement can be sold. There are some circumstances that may prevent the sale. Some annuities that have been purchased with funds from an employers retirement account may not qualify.
The next step would be to determine the potential worth of your contract. With this information you will be able to decide if the contract is worth selling and also aid in determining whether a sale is a good financial choice.
There can be substantial fees involved in such a sale. Companies or investors that specialize in these sales will receive a substantial fee for their services thereby minimizing your lump sum payment. You will need accurate numbers to make sure the lump sum you receive will make the loss of future income an acceptable choice.
Of course if you find yourself in an emergency situation such as health problems, potential home mortgage foreclosure or other financial difficulties a lump sum sale may be a good decision. This type of decision should normally only be taken after considering all other options such as a loan from from a bank or credit union, sale of other assets and other possible sources of temporary income.
Stress Will Affect The Answer To Your Question, “Should I Sell My Annuity Payments”.
You will most likely be under stress when trying to answer the question, “Should I sell my annuity payments“, and this could cause a quickly made decision to be very costly. Any decision regarding annuities or structured payments will be complex because of the tax implications and the fees involved. Because of these circumstances a decision should never be made with out first obtaining advice and council from a trusted professional.
If you decide to make the sale be sure to obtain quotes from several companies. Beware of tactics such as companies offering a low price which may not offer the best payout for you. Never enter into an agreement with someone who contacts you unexpectedly offering to purchase your contract. Because of the complexity of these sales and the fact that in many cases these sales will be made while you are under stress to raise cash the potential for abuse is always near.
When properly selling all or part of your annuity or settlement can be a wise and helpful financial decision. As with any financial decision do the proper research, obtain a number of quotes from different sources and be sure to use any lump sum payment you receive wisely.